2007 Marginal Tax Brackets

Your marginal tax bracket determines how much of the earnings from savings and investments you get to keep after taxes. Below are the four individual tax rate schedules for 2007:

Individual Tax Rate Schedules for 2007
Filing Status Taxable Income ($) Marginal Tax Bracket Rate (%)
Married Filing Jointly 0 to 15,650 10
15,651 to 63,700 15
63,701 to 128,500 25
128,501 to 195,850 28
195,851 to 349,700 33
349,701 and higher 35
Head of Household 0 to 11,200 10
11,201 to 42,650 15
42,651 to 110,100 25
110,101 to 178,350 28
178,351 to 349,700 33
349,701 and higher 35
Single 0 to 7,825 10
7,826 to 31,850 15
31,851 to 77,100 25
77,101 to 160,850 28
160,851 to 349,700 33
349,701 and higher 35
Married Filing Separately 0 to 7,825 10
7,826 to 31,850 15
31,851 to 64,250 25
64,251 to 97,925 28
97,926 to 174,850 33
174,851 and higher 35
Tax-Exempt and Taxable Yields Compared*
Tax-Exempt Yield (%) Taxable Equivalent Yield (%) for Tax Rate of:
15% Tax Bracket 25% Tax Bracket 28% Tax Bracket 33% Tax Bracket 35% Tax Bracket
2.0 2.35 2.66 2.77 2.98 3.08
2.5 2.94 3.33 3.47 3.73 3.85
3.0 3.53 4.00 4.17 4.48 4.62
3.5 4.18 4.66 4.86 5.22 5.38
4.0 4.71 5.33 5.55 5.97 6.15
4.5 5.29 6.00 6.25 6.71 6.92
5.0 5.88 6.66 6.94 7.46 7.69
5.5 6.47 7.33 7.63 8.20 8.46
6.0 7.06 8.00 8.33 8.95 9.23
6.5 7.65 8.66 9.02 9.70 10.00
7.0 8.24 9.33 9.72 10.44 10.77
*Federal income tax rates only. Does not include state income tax.

If you cannot find a specific rate on the chart you can compare yields by using the following formula:

Taxable equivalent yield = tax-free yield ÷ (100% - marginal tax bracket %)

Example: Assume you are in the 25% tax bracket, and have an account with a 4.5% tax-free yield. To get the equivalent taxable yield, divide 4.5% by 75% (100% - 25%). The taxable yield is 6.%.


  1. Rutgers
  2. Executive Dean of Agriculture and Natural Resources
  3. School of Environmental and Biological Sciences